Mexico’s Petrochemical Sector: Challenges, Innovation and Future

Q: How does Polioles add value to the oil and gas value chain?

A: Polioles is a Mexican company that manufactures specialty and industrial chemicals. In the oil and gas value chain, we specialize in different oil field chemicals such as emulsion breakers, corrosion inhibitors, surfactants, polyols, flow improvers, paraffin inhibitors, asphaltene dispersants, among others. It is in emulsion breakers where we have an extensive experience and broad portfolio. The industry calls them demulsifiers, even if it is not an academic term. Their role is to break the oil and water emulsion in oil production. Once crude is extracted, it comes with a high water content, along with salts, asphaltenes, and paraffins. That crude has to go through a treatment process to be put in condition for final use. Our products treat the crude oil and facilitate the separation of all undesired characteristics before going to the refining process. We work closely with our customers to identify the best formula that suits their needs in regards with the type of crude oil being produced. 

Q: How has the changing quality and composition of crude oil affected your product development and client needs?

A: When oil extraction becomes more difficult, you typically face two situations. The first is that the crude can be of lower quality, for example heavier, with higher content of paraffins, asphaltenes, and other properties that lighter crude usually has less of. The second is that as a well matures, the fluid extracted tends to have more water. There are oilfields where more than 95% of what is extracted is water, meaning they actually treat more water than oil. So, separating oil from water and treating it to specification, given the high content of other chemicals, has changed significantly. This requires us to constantly stay at the forefront in developing products that perform well. Their purpose is to provide the most effective treatment, in the least possible time, with the best possible separation. And our objective is to help our clients achieve such purpose.

Q: How does Polioles approach R&D and sustainability to meet client needs and future market demands?

A: We have an R&D department, with a dedicated laboratory and also a pilot plant. Through both, we constantly develop new products and formulas to meet our clients evolving needs. Sometimes clients require a product for a specific function that our portfolio cannot yet provide, so together we work on new formulations or new products that can support such function. We are also beginning to develop a line of research focused on building a more sustainable portfolio. For example, we are currently focusing on biosurfactants. Normally, our surfactants come from petrochemical processes, but there are biotechnological processes that can create surfactants from natural sources. Recently, we completed an industrial test for biosurfactant production. We are now analyzing and evaluating the results to continue this research and broaden our portfolio. Some of our clients are already asking for solutions that not only comply with regulations but also support environmental awareness and care.

These types of solutions are feasible, but requires collaboration from all parties involved. At the end of the day, the client wants a solution that is technically and economically balanced. However, the cost associated with adopting these new products could present a challenge, nonetheless the long-term benefits are worth it. The problem is that currently there is little incentive for product development, especially in Mexico. But that can change, new regulations and commitments on emission reductions can incentivize the development of a new line of products. 

Q: How does Polioles ensure quality and consistency across its products?

A: If there is something we are proud of at Polioles, it is the quality of our products. In client satisfaction surveys, quality always stands out. We safeguard quality throughout our entire value chain. For example, to introduce even a single raw material from a new supplier, there is a full protocol and acceptance process within our quality management system. We have a department exclusively dedicated to quality management, ensuring that every product development process follows strict controls and meets the client’s specifications. It is a very robust system.

Q: What are the main challenges currently facing Mexico’s petrochemical industry?

A: There are several challenges. The first is access to abundant and competitive raw materials. As you know, Mexico’s petrochemical production has declined substantially in recent years. For example, ethane production has fallen from more than 100Mb/d to less than 50 Mb/d. The same trend applies to many petrochemicals. In our case, ethylene oxide has dropped from over 300,000t to about 60,000t today. This discourages investment and forces us to deal with erratic supply month after month. The second challenge is regulatory. The new Hydrocarbons Law and its regulations will overregulate practically all petrochemicals. Overregulation reduces competitiveness compared to other regions, and this not only discourages new investments but could even put existing ones at risk. The third challenge is macroeconomic and geopolitical. Trade tariffs, uncertainty, and global volatility create an environment that is far from ideal, which threatens economic growth and stability.

Q: Where do you see opportunities for Polioles given PEMEX’s new 2035 strategy?

A: As the saying goes: crisis brings opportunities. We believe we must be disciplined and well-prepared to seize them. Preparation has many dimensions: market knowledge, financial strength, and above all, human talent. PEMEX just presented its 2035 strategic plan and for the first time in decades, it includes a plan to grow petrochemicals. For many years, PEMEX focused on exploration and production and more recently on refining for reasons of national sovereignty. Now, petrochemicals are a priority. PEMEX plans to increase ethylene derivatives production from about 160,000t to over 1Mt by 2030, at Cangrejera and Morelos. Plan Mexico looks very positive to us and will create many opportunities to the industry. We hope that the schemes and regulation are aligned with the needs of the industry so we can transform Plan Mexico and specifically, PEMEX plan into a reality.

Q: How do you see the future of Mexico’s petrochemical industry and Polioles’ role in it?

A: The oil industry goes far beyond transportation fuel. It influences nearly everything in daily life, often in ways people do not realize. What excites me most is the growing awareness, from companies, governments, and especially consumers, that we need to do things differently. Otherwise, our planet may not revert some of the impact the industry is causing. This may not happen in 10 or 20 years, but something must change. You cannot just remove the oil industry and expect everything to be solved. There are many factors involved. But as all stakeholders work together, very positive results can emerge. The challenge is balancing prosperity and growth with environmental responsibility. In the oil industry, what excites us most are advances in biotechnological products. Where before such discussions were niche at conferences, now they dominate the conversation. It is a responsibility we all share, and we are committed to developing solutions that allow everyone to contribute to a more prosperous future.

The petrochemical industry in Mexico is at a critical crossroads. In the next two to three years, its future will be defined, closely tied to Plan Mexico, regulation, and industry-government collaboration. There are positive signals, but much still needs to happen, from regulation and investment certainty to security, infrastructure, energy supply, and competitive raw material access. 

For Polioles, this is also a defining moment. Our history shows adaptability: the Polioles of today is very different from the one founded 60 years ago, and in 30 years it will be different again. That evolution will depend on our talent and on building strategies that allow us to keep competing. Our role will depend on how the industry evolves. If challenges here cannot be overcome, we will seek opportunities elsewhere. Above all, what will guide us is closeness to our clients. Their needs dictate our evolution. If clients in a segment demand solutions we do not yet have, it is our responsibility to adapt and provide them.

Polioles is a manufacturer of specialty and industrial chemicals  and brings solutions across 20+ markets in over 25 countries. Its high-performance team emphasizes innovation, operational excellence, sustainability, and R&D, backed by BASF and Alpek, serving diverse sectors including oil and gas, automotive, construction, and personal care.